Bitcoin has been heading straight for the moon for much of 2013, and it seems it has no plans of slowing down anytime soon. The virtual currency has reached $1,000 before, but venture capitalist Chris Dixon expects it to go beyond that amount, about 100,000 times more.
Dixon and Andreessen Horowitz think that 1BTC could very well be worth $100,000 in the future. Of course, this wouldn’t happen over night. Bitcoin will have to gather support from more major businesses, governments and banks before it can rub shoulders with credit cards.
For this to work, Dixon believes bitcoin would have to become the primary online payment option, meaning it would have to beat out Paypal.
Interestingly enough, Dixon compares bitcoins to internet domain names, realizing that the early 1990s was filled with odd stares towards those who invested in domains. Back then, no one would have ever thought that domain names would be worth millions of dollars.
Dixon told Wired magazine:
“It would have been absurd to say in 1993 that domain names were worth $10 million each.”
He points out that most start-ups supported by Andreessen Horowitz sometimes pay hundreds of thousands of dollars for ‘average’ domain names. Dixon claims that instead of investing in Google or Amazon back in the 1990s, the best investments would have been towards domain names.
Some argue that Dixon’s claims are false, saying that many of those domain names are worthless and that domains can’t be compared to bitcoins. Each domain is different, while bitcoins are all worth the same.
But that’s precisely the point. Since all bitcoins are worth the same, there’s less of a gamble. Either all bitcoins will be worth a lot more, or all will fail. It’s all in or all out.
Though some libertarians are in favor of bitcoin, the majority of them simply aren’t. Dixon argues that every big technological movement has a political component. Politicians would have no choice but to regulate bitcoin if it is enforced more heavily by businesses and consumers.
More notably, politicians will need to re-examine their interests and their backers in the business community.
Last December alone, Andreessen Horowitz raised $25 million in funds for Coinbase, the largest deal in bitcoin history.
Image Via Shuttershock